Associate Bank'S ... vs State Bank Of India & Ors on 15 October, 1997
In Associate Banks Officers Association vs. State Bank
of India & Ors. [JT 1997 (8) S.C. 422] employees unions of
various banks which were subsidiaries of the State Bank of
India under the State Bank of India (Subsidiaries Bank) Act,
1959 claimed higher terminal benefits, better medical
facilities and extra increments in their pay-scale on the
ground that such benefits were available to the employees
holding equivalent or similar ranks in the State Bank of
India. This Court declined to give relief to the petitioners
and said that "equal pay for equal work for both men and
women" was one of the Directive Principles of State Policy
laid down in Article 39(d) of the Constitution had been
applied in cases of irrational discrimination in the pay-
scales of workers doing the same or similar work in an
organisation and that it had not been applied when there was
a basis or an explanation for the difference. The Court said
that extending this principle to compare pay-scales in one
organisation with pay-scales in another organisation would
be stretching of the doctrine even though between the
employees doing comparable work and if at all it had to be
applied it must be done with caution lest the doctrine
snaps. This Court said that many ingredients go into the
shaping of wage structure in any organisation and that a
simplistic approach, granting higher remuneration to other
workers in other organisations because another organisation
had granted them, might lead to undesirable results. In the
present case what we find is that the appellants have been
granted the same pay-scale as that given to the staff in the
Indian Audit and Accounts Department. Their grievance here
is that they should be given the same status viz., their
post be incorporated in Group B post as is existing in the
CAG and CGDA.